Regions Bank vs. Bank of America: Which offers better auto loans?
Securing vehicle financing from a trusted bank means expanded customer service, in-person support and a range of funding options. But choosing the right bank that fits your needs can feel overwhelming.
Regions Bank and Bank of America offer similar experiences when funding new, used or refinancing car loans. Financing with Regions Bank is best for borrowers looking to finance an expensive vehicle or secure an electric vehicle (EV) loan, while Bank of America is better for those who plan to purchase through a dealer.
Regions Bank vs. Bank of America at a glance
Consider each bank’s specifics, beyond the annual percentage rate (APR), to decide which best serves the needs of you and your future vehicle.
Regions Bank |
Bank of America |
|
|---|---|---|
| Bankrate score | 3.7 | 3.7 |
| Better for |
|
|
| Loans offered | New and used, private party, refinance | New and used, private party, refinance, lease buyout |
| Loan amounts | $5,000–$125,000 | Starting at $7,500 |
| APRs | 7.24%-16.99% | Starting at 5.34% |
| Loan term lengths | Not Specified | 48–72 months |
| Fees | Not specified | Not specified |
| Minimum credit score | Not specified | Not specified |
| State footprint | 15 states | 50 states |
| Time to funding | Not specified | As soon as the same business day |
| Autopay discount? | Yes | No |
| Refinancing restrictions |
|
|
Regions Bank
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Best for: Borrowers in the Southern and Midwestern United States
Serving customers across the Southern and Midwestern United States, Regions Bank provides a wide range of products, including deposit accounts, mortgage and auto services. Regions Bank’s starting APR, 7.24 percent, is reasonable but slightly higher than the national average interest rate on new car loans (7.03 percent, according to Experian).
However, the Alabama-based bank has minimal information on its site regarding income or credit requirements, which can make applying intimidating for borrowers with poor credit. To find out more information, you must contact the bank or move forward with an application.
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Pros
- Complimentary gap protection: If you finance a new or used vehicle through Regions, you’ll get free guaranteed asset protection coverage. This coverage isn’t typically complimentary.
- Autopay discount: Setting up automatic payments from a Regions checking account nets you 0.25 percent off your interest rate.
- High loan-to-value ratio: You can finance up to 110 percent on private party purchases and 130 percent if buying from a dealership.
Cons
- Limited state availability: These loans are available in only 15 states, concentrated in the Midwest and South.
- Refinance restrictions: Your car must be under seven years old. Many lenders allow financing for vehicles up to 10 years old.
- No prequalification: You’ll have to go through the application process — and take a credit score hit — to see the rates you qualify for.
Bank of America
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Best for: Bank of America rewards members
One of the largest banks in the country, Bank of America serves borrowers in all 50 states. The institution offers new and used auto loans, lease buyout loans and refinance loans. You can buy from a dealership or a private party.
The institution carries many advantages, especially for its reward members. Membership is secured via holding a high deposit or investment balance. While these membership perks can mean up to 0.50 percent off, you’ll need to qualify for them by meeting the threshold deposit and investing account balance. And the discounts may not outweigh the high minimum loan amount.
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Pros
- Fast funding: You could be approved and funded same-day. Most banks don’t work that quickly.
- Greater loan diversity: Regions Bank doesn’t offer a lease buyout loan, but Bank of America does.
- Low starting APR: Bank of America’s lowest APR compares favorably to both the national average and what other big banks offer. But remember, you’ll need excellent credit to land the best rates — and if you do qualify, you may find lower rates at a credit union.
Cons
- Discounts for members only: You’ll need at least $20,000 in combined investment and deposit account funds to qualify for a 0.25 percent rate discount — or $100,000 for the full 0.50 percent off.
- Unspecified credit requirement: Like many banks, Bank of America doesn’t share details about the credit score you’ll need to qualify.
- No prequalification: As with Regions Bank, you’ll have to take a temporary credit score hit of a few points to see your rates.
How to choose between Regions Bank and Bank of America
The best choice depends on where you live, how expensive of a car you want and whether you already have an account with one of these banks.
If you’re looking to purchase, you’ll find flexible loan amounts and enticing APRs for EV loans with Regions. However, Bank of America offers lower starting APRs and a bigger state footprint. On the refinancing side, Regions offers a larger range of funding amounts but more vehicle restrictions, while Bank of America can provide funding as soon as the same day.
Choose Regions Bank if you are buying an EV
Buying an electric vehicle comes with many perks outside of the obvious environmental benefits. They can cost less over the lifetime of ownership and come with available tax credits. But these vehicles do tend to cost much more than a traditional option.
Regions Bank offers two perks for buyers who want to drive electric. First, the bank offers EV-specific auto loans that carry discounted rates. Secondly, Regions has a high loan maximum of $125,000 — perfect for purchasing a decked-out electric car.
But, of course, you’ll need to live in one of the 15 states Regions Bank serves to qualify.
Choose Bank of America if you are buying from a dealership
Purchasing your vehicle from a dealership comes with the benefit of in-person test driving experience and increased ability to negotiate. If this process interests you, consider working with one of Bank of America’s authorized dealers across the country.
Besides the positive dealership experience, its minimum interest rate sits below recent averages. In the third quarter of 2023, Experian data revealed an average of 7.03 percent for new vehicles, while Bank of America boasts a minimum of 5.34 percent for new vehicles. This small difference can mean a big chunk of cash saved each month.
Finally, Bank of America offers a 30-day shopping period, giving borrowers ample time to decide if the loan is right for them.
Compare more lenders before applying
Choosing between two bank lenders with similar interest rates can feel challenging. Instead, consider your own needs and financial circumstances. Securing a new or used auto loan from Bank of America comes with discounts if you’re an account holder. But Regions is a better option if you plan to finance an expensive vehicle like an EV.
If you’ve had past credit challenges, you may be denied financing or receive a steep rate from these lenders. Try checking out our picks for bad credit loans.
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